Society today is such that it demands that every person and every organisation must be made accountable for their actions. We have regulatory bodies and independent watchdogs in place for almost every different type of industry which can only be for the greater good. However, the age old problem still remains - Who polices the police?
Today, nearly everyone is responsible to someone else - no matter how high their position. In the United Kingdom today we have a regulatory body within the Financial Services which is responsible for the way in which the industry functions. The Financial Services Authority has been set up by the government as a limited company and is answers to the treasury.
To some people within the industry, the Financial Services authority is seen as all powerful - Judge, Jury and executioner. The question is often raised amongst many brokers - Who is the FSA accountable to?
It is a difficult task that faces the FSA - they have both an obligation to consumers and businesses alike to ensure fair treatment all round. It is essential that the FSA's working practices are constantly reviewed in order to ensure that
it is fit for purpose.
In June 2006 the Treasury asked the National Audit Office (NAO) to conduct a review of the FSA, focusing mainly on the three following points - Its economy, efficiency and its effectiveness. In April 2007 the National Audit Office published its findings on how the FSA had used its resources in five main areas of its operation:
- Performance Management
- Working with other UK regulators
- International influencing and representation
- Financial Crime
- The Financial Capability of consumers.
In summary, the National Audit Office's findings was by no means Damming however there were a number of suggestions and outcomes. One notable suggestion was that the FSA should be stepping up their focus on Financial Crime. It was thought that not enough was currently being done in the fight against money laundering - Currently the FSA devotes just under 10% of its resources to its financial crime objectives.
It is only through constant reviews and feedback from industry players that the FSA can continue its financial capability status as a world leader and that it will become fit for purpose for the markets and the industry as a whole that it regulates.
Author Resource:-
James Copper is a writer for a finance web site called any-loans.co.uk where you can find out about all finance related topics.
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